An Assessment of the Financial Viability of Public Private Partnerships Projects in Container Terminal Development at Port of Colombo for Future Container Terminal Development.

Abstract

The development of a country's economy relies heavily on the efficiency and competitiveness of its ports, especially those that are open to sea trade. Improving port system performance is essential for reducing transport costs and enhancing the overall competitiveness of the economy. In this context, Assessment of the financial viability of public-private partnership projects in the development of container terminals in the Port of Colombo is crucial for future container terminal development. This evaluation will examine various financial factors such as a profitability assessment and Investment assessment to evaluate the financial viability of privatization projects in the Sri Lankan Port Sector. Additionally, the evaluation will consider the main paradigms and stakeholders involved in port investment decisions, as well as the critical success factors for implementing public-private partnerships in the port context (Panayides,P et al., 2015)
The problem of this study is evaluating financial viability of two private container terminal operating at Port of Colombo and how those terminals financially efficiently running. Evaluating the financial viability of publicprivate partnerships in the development of container terminals in the Port of Colombo is crucial for future container terminal development to enhance the efficiency, competitiveness, and overall economic growth of the country. Based on these findings, this evaluation aims to provide valuable policy implications for port authorities and operators in achieving and maintaining their competitive advantage. The completion of this sentence could be “By thoroughly evaluating the financial viability of public-private partnerships in container terminal development at the Port of Colombo, policymakers and stakeholders can make informed decisions to ensure maximum efficiency and competitiveness of the port, ultimately promoting economic growth”. (Kim et al., 2019) Furthermore, Private investors can make the right decision on whether their investment is feasible or not for future expansion Projects. If their investment is not feasible for the future, they can make clear decisions or they can make strategic decisions to overcome problems and direct the right Parth to recover the project they invested.
To evaluate the financial viability of those Projects, in this case, used profitability analysis and Investment Assessment. Though the Profitability analysis assesses terminals Profit or gain they make in relation to its expenses. The Investment Assessment evaluate the process of those Project's income, Risk and resale value. It is important to anyone who is considering an investment for future investment.